Dongfeng Honda to build third automobile production plant in China

Dongfeng Honda Automobile Co, Honda’s production and sales joint venture in China, has announced plans to build a third automobile production plant to meet increasing demand from China. The announcement included a groundbreaking event in Wuhan, China.

The event was attended by representatives from the governments of Wuhan, Hubei Province, Zhu YanFeng, chairman of Dongfeng Motor Group Co, as well as Takahiro Hachigo, president, CEO and representative director of Honda Motor Co,; Yasuhide Mizuno, COO for Regional Operations (China) of Honda Motor Co, Ltd.

Dongfeng Honda plans to build the third plant on a 1.2 million-square-metre plot acquired by the company, located approximately 8km southeast of the company’s first plant within Wuhan Economic & Technological Development District.

Dongfeng Honda's second automobile plant in Wuhan, Hubei Province.
 

120,000 units capacity for new plant

With an investment of approximately 3 billion RMB (Rs 3,054 crore), the new plant is scheduled to become operational in the first half of 2019, with annual production capacity of 120,000 units. Moreover, this new plant will be designed with a concept to accommodate production of electrified automobiles, where demand is expected to expand in the coming years in the automobile market in China.

Since it began production and sales of CR-V in April 2004, Dongfeng Honda has expanded its product lineup, including the Civic, since 2006, and the XR-V compact SUV, since 2015. With the introduction of the all-new Civic and GIENIA compact hatchback, Dongfeng Honda’s total sales for 2016 is expected to exceed 560,000 units.

The addition of the third plant will increase Dongfeng Honda’s overall annual production capacity to 600,000 units, which will increase Honda’s overall automobile production capacity in China to 1.25 million units, including 600,000 units of Guangqi Honda and 50,000 units of Honda Automobile (China) Co, an export automobile production plant.

Commenting on the new plant plans, Takahiro Hachigo, president, CEO and representative director of Honda Motor Co, said: “Honda sales in China is going strong and annual unit sales for 2016 is expected to reach 1.2 million units. The Chinese market has potential for further development and growth. In order to continue meeting such strong demand, Honda will introduce its highly attractive products equipped with leading-edge technologies to the Chinese market ahead of other markets around the world.”